NTPC Secures Approval for Rs 18,000 Crore Fundraising Through Debentures
NTPC has gained shareholder approval to raise Rs 18,000 crore via non-convertible debentures. This capital will be raised in up to 12 tranches within a year, following a special resolution. The funds are intended to support NTPC's ongoing capacity expansion requiring significant debt financing.
- Country:
- India
State-owned power giant NTPC has announced a green signal from its shareholders to proceed with a massive Rs 18,000 crore funding strategy via non-convertible debentures. This financial maneuver aligns with the company's strategic expansion plans.
The funds are set to be raised across up to 12 tranches, utilizing a private placement method within a year of the resolution's passage, as stated in a regulatory filing. The decision was rooted in a special resolution left to postal ballot votes, which concluded on July 23 after a month-long remote e-voting process that began on June 24.
As NTPC continues to focus on expanding its operational capacity, these funds will play a crucial role in meeting its capital expenditure demands, primarily financed through debt. The company's management had previously laid the groundwork for this move with preemptive board approval on June 21.
(With inputs from agencies.)
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